Delek US Q3 Earnings & Revenues Beat Estimates, Adjusted EBITDA Up Y/Y

Delek US Holdings, Inc. DK reported third-quarter 2025 adjusted earnings per share of $1.52, which solidly beat the Zacks Consensus Estimate of 28 cents. The bottom line marked a sharp improvement from the year-ago adjusted loss of $1.45, supported by stronger year-over-year performance across both segments and an 18.1% reduction in operating expenses.

Net revenues declined 5.1% year over year to $2.9 billion, reflecting lower revenues from the refining segment (excluding intercompany fees and revenues). However, the top line beat the Zacks Consensus Estimate by $177 million.

The diversified downstream energy company posted adjusted EBITDA of $759.6 million, sharply rising from $70.6 million reported a year earlier. Additionally, the reported figure beat our estimate of $177 million.

On Oct. 29, 2025, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on Nov. 17 to its shareholders of record as of Nov. 10, 2025.

During the same period, Delek US repurchased roughly $15 million worth of its own common shares and distributed $15.3 million in dividends.

Delek US Holdings, Inc. Price, Consensus and EPS Surprise

Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote

DK’s Segmental Performances

Refining: The refining segment reported an adjusted EBITDA profit of $696.9 million, a notable increase from the $10.2 million profit recorded in the prior-year quarter. Additionally, the reported figure beat our profit estimate of $3.1 million.

The solid year-over-year profit increase was primarily driven by benefits from small refinery exemptions during the quarter and a stronger refining margin resulting from wider crack spreads. Delek US’ benchmark crack spreads rose an average of 46.8% year over year during the third quarter of 2025.

Logistics: This unit represents Delek Us’ majority interest in Delek Logistics Partners DKL, a publicly traded master limited partnership, that owns, operates, develops and acquires pipelines and other midstream assets.

In the third quarter, the segment registered an adjusted EBITDA of $131.5 million compared with $106.1 million in the year-ago quarter. The year-over-year increase was fueled by the W2W dropdown impact and additional contributions from the H2O Midstream acquisition completed on Sept. 11, 2024, the Gravity acquisition on Jan. 2, 2025, along with higher wholesale margins. Moreover, the figure beat our estimate of $85.2 million.

DK’s Financials

Total operating expenses in the third quarter decreased about 18.1% year over year to $2.6 billion. Delek US spent $90.6 million on capital programs in the same time frame.

As of Sept. 30, 2025, the company had cash and cash equivalents worth $630.9 million and long-term debt of $3.2 billion, with a debt-to-total capital ratio of about 87.7.

Delek US' consolidated balance sheet for the same period included DKL, which held $6.9 million in cash and $2.3 billion in long-term debt. Excluding DKL, Delek US reported $624 million in cash and $889 million in long-term debt, yielding a net debt of $265 million.

DK’s Q4 and 2025 Guidance

The integrated downstream energy company expects a strong close to the fourth quarter, supported by stable operations and disciplined cost management. It anticipates operating expenses of $205-$220 million, general and administrative expenses of $52-$57 million, depreciation and amortization of $100-$110 million and net interest expense of $85-$95 million.

Throughput is projected to remain healthy, with total crude throughput in the 252,000-284,000 barrels per day (bpd) range and total system throughput in the 271,000-303,000 bpd band. Refinery-specific throughput is expected to reach 70,000-78,000 bpd at Tyler, 67,000-75,000 bpd at El Dorado, 62,000-70,000 bpd at Big Spring and 72,000-80,000 bpd at Krotz Springs.

Looking ahead to 2025, the company expects stronger cash-flow visibility driven by continued progress under the Enterprise Optimization Plan, which now targets at least $180 million in annual run-rate improvement. It also anticipates receiving about $400 million over the next six to nine months from the monetization of historical Small Refinery Exemption credits. Additionally, Delek Logistics is forecasted to end the year in the upper half of its upgraded 2025 EBITDA guidance of $500-$520 million, supported by solid operational execution and contributions from recent acquisitions.

DK and DKL currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Energy Earnings at a Glance

While we have discussed DK’s third-quarter results in detail, let us take a look at two other key reports in this space.

Liberty Energy Inc. LBRT, a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.

As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.

San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.

The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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